Government Grants

Government Grants

by Dave Swan

In addition to the First Home Owner Grant,  both Federal and State governments have introduced generous building grants designed to stimulate the residential construction industry and it’s not just First Home Owners who can benefit. The information below is intended for WA applicants.

Building Bonus Package – building grant for WA residential market

A grant of $20,000 is available for eligible applicants who:

  • enter into a contract to build a new home on vacant land or
  • enter into an off-the-plan contract to purchase a new home as part of a single-tier strata scheme.

Home Builder Government Building GrantThe contract must be entered into between 4 June 2020 and 31 December 2020.

There is no cap on the purchase price or value of the contract.

Multiple grants can be paid to the same applicant on separate transactions that meet the criteria for each grant.

If you receive one of these grants, you may still be eligible to receive the first home owner grant (see below).

These grants are different to the Commonwealth Government’s HomeBuilder scheme.  If you receive one of these grants, you may still be eligible to receive the $25,000 HomeBuilder grant (see below).

For additional information: https://www.wa.gov.au/service/community-services/grants-and-subsidies/apply-new-home-construction-grant

If you are considering a new build, talk to us today on (08) 9433 4841 or contact us

 

HomeBuilder – building grant for Australia-wide residential market

A grant of $25,000 is available for eligible applicants.

Home Builder Government Building GrantHomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations.

For additional information: https://treasury.gov.au/coronavirus/homebuilder

If you are considering a new build, talk to us today on (08) 9433 4841 or contact us

 

First Home Owner Grant

The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence. The grant is $10,000 or the consideration paid to buy or build the house if less than that amount. Only one grant is payable per eligible transaction, so two people purchasing a house together may only receive one grant.

First Time Buyers Government GrantIf you’re located south of the 26th parallel, which basically covers all the Perth metropolitan area, you can claim the FHOG WA if your new home is worth up to $750,000 – this includes the value of the land plus buildings.

If you buy or build a home north of the 26th parallel, the property must be valued up to or below $1 million to be eligible for the FHOG WA.

The First Home Owner Grant in Western Australis is no longer available if you buy an established home however you may be able to claim stamp duty savings

For more information: https://www.wa.gov.au/organisation/department-of-finance/fhog

If you are a first time buyer, talk to us today on (08) 9433 4841 or contact us

 

Home Buyers Assistance Account

A grant from the Home Buyers Assistance Account reimburses some of the incidental expenses incurred in connection with the purchase of a first home in Western Australia, provided the applicants meet all criteria. Eligible applicants receive a grant of up to $2,000.

The grant can be used to reimburse some incidental expenses including mortgage registration fees, solicitor and/or conveyancing fees, valuation fees, inspection fees, establishment fees, mortgage insurance premiums and lending institution fees associated with the purchase of your first home.

To be eligible for the Home Buyers Assistance Account in WA, you need to pay $400,000 or under for your first home, and the property must be purchased through a licensed real estate agent operating in Western Australia.

The Home Buyers Assistance Account is only available if your first home is built or partly built when you agree to buy it, not a plan to build a home.

For more information: https://www.commerce.wa.gov.au/consumer-protection/home-buyers-assistance-account

If you are a first time buyer, talk to us today on (08) 9433 4841 or contact us

 

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme is an Australian Government initiative to support eligible first home buyers purchase their first home sooner.

Usually first home buyers with less than a 20 per cent deposit need to pay lenders mortgage insurance. Under the Scheme, eligible first home buyers can purchase a modest home with a deposit with as little as 5 per cent (lenders criteria also apply). This is because NHFIC guarantees to a participating lender up to 15 percent of the value of the property purchased that is financed by an eligible first home buyer’s home loan.

There are currently 27 participating lenders across Australia offering places under the First Home Loan Deposit Scheme.

Scheme places

First Home Loan Deposit Scheme places for the 2019-20 financial year have now been reserved.

Another 10,000 Scheme places will be available from 1 July 2020.

NHFIC released 10,000 Scheme places for the 2019-20 financial year from 1 January 2020. 5,000 Scheme places were made available to the major banks – CBA and NAB. The remaining 5,000 Scheme places were offered through 25 non-major lenders.

For more information: https://www.nhfic.gov.au/what-we-do/fhlds/

If you are a first time buyer, talk to us today on (08) 9433 4841 or contact us

Top